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  • Exam Name: Commercial Negotiation
  • Last Update: 28-Mar-2024
  • Questions and Answers: 162
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L4M5 Questions and Answers

Question # 1

In addition to organisational power, personal power of each negotiator can influence the outcomes of a negotiation. A good negotiator can leverage different sources of power. Is this statement true?

A.

Yes, because the good negotiator recognises his own power in a negotiation

B.

No, because each person has only one superior source of personal power

C.

Yes, because allsources of power have similar effectiveness in every situation

D.

No, because only organisational power can be leveraged during a negotiation

Question # 2

Buying organisation may increase its leverage with suppliers by concentrating spend. Which of the following are most likely to be forms of supplier spend consolidation? Select THREE that apply.

A.

Forming purchasing consortia

B.

Volume consolidation across categories

C.

Volume separation

D.

Paying supplier on time

E.

Volume redistribution

F.

Simplify procurement process

Question # 3

Active listening in negotiation includes which of the following activities?

1. Hearing

2. Interpreting

3. Rapport

4. Influence

A.

3 and 4 only

B.

1 and 3 only

C.

1 and 2 only

D.

2 and 3 only

Question # 4

Which of the following is a disadvantage of absorption costing method?

A.

Fixedcost allocated to products on the basis of the cost of activities used in producing them

B.

Variable costs are not taken into product final costs

C.

Using marginal cost of producing addition units

D.

Limited understanding of true costs incurred

Question # 5

At which stage in a negotiation would questions be asked to obtain missing information?

A.

The bargaining stage

B.

The proposing stage

C.

The opening stage

D.

The testing stage

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